Bond Credit Enhancement – 4% LIHTC*

Financing for affordable LIHTC multifamily properties funded by the sale of fixed- or variable-rate tax-exempt bonds

Targeted Affordable Housing Offerings

Bond Credit Enhancement – 4% LIHTC
Bond Credit Enhancement With Other Affordability Components
9% LIHTC Mortgage
Cash Mortgages With Other Affordability Components
Moderate Rehabilitation
Tax-Exempt Bond Securitization (TEBS)
Fixed and Variable Liquidity Pricing

At-a-Glance Comparison

Product Summary	Forward Commitment	Immediate Funding	Moderate Rehabilitation
Product Description	Bond credit enhancement provided for new construction or substantial rehabilitation of affordable multifamily properties with 4% LIHTC	Bond credit enhancement provided for the acquisition or refinance of stabilized affordable multifamily properties with 4% LIHTC	Bond credit enhancement provided for the moderate rehabilitation (with tenants in place) for the acquisition or refinance of stabilized multifamily properties with 4% LIHTC
Type of Funding	Bond credit enhancement available during construction phase; bond credit enhancement during permanent phase following conversion	Bond credit enhancement for fixed- or variable-rate tax-exempt bonds	Bond credit enhancement for acquisition/rehabilitation; based on projected post-rehab NOI; cash or letter of credit collateral required to fund gap between supportable debt on current NOI and mortgage amount (collateral held until stabilization). Interest only during the rehabilitation/stabilization period.
Eligible Properties	To-be-built or substantially rehabilitated garden, mid-rise or high-rise multifamily properties with 4% LIHTC	Garden, mid-rise or high-rise multifamily properties with 4% LIHTC that maintain 85% occupancy for 90 days	Garden, mid-rise or high-rise multifamily properties with 4% LIHTC undergoing moderate rehabilitation with tenants in place
Minimum Debt Coverage Ratio	Variable-rate with cap hedge: 1.20x; 1.25x for cash-out refinance Fixed-rate and variable rate with minimum 10-year swap: 1.15x; 1.20x for cash-out refinance	Variable-rate with cap hedge: 1.20x; 1.25x for cash-out refinance Fixed-rate and variable rate with minimum 10-year swap: 1.15x; 1.20x for cash-out refinance	Variable-rate with cap hedge: 1.20x; 1.25x for cash-out refinance Fixed-rate and variable rate with minimum 10-year swap: 1.15x; 1.20x for cash-out refinance
Maximum Loan-to-Value	Variable-rate with cap hedge: 80% of adjusted value or 85% of market value Fixed-rate and variable rate with minimum 10-year swap: 85% of adjusted value or 90% of market value HUD Risk Sharing (fixed-rate only): 90% of adjusted value	Variable-rate with cap hedge: 80% of adjusted value or 85% of market value Fixed-rate and variable rate with minimum 10-year swap: 85% of adjusted value or 90% of market value HUD Risk Sharing (fixed-rate only): 90% of adjusted value	Variable-rate with cap hedge: 80% of adjusted value or 85% of market value Fixed-rate and variable rate with minimum 10-year swap: 85% of adjusted value or 90% of market value HUD Risk Sharing (fixed-rate only): 90% of adjusted value
Loan Term	Minimum of the remaining LIHTC compliance period or 15 years, whichever is less. Maximum 35 years.	Minimum of the remaining LIHTC compliance period or 15 years, whichever is less. Maximum 35 years.	Minimum of the remaining LIHTC compliance period or 15 years, whichever is less. Maximum 35 years. Moderate rehabilitation period/stabilization (max 24 months) will be included in loan term.
Construction Loan Term	Maximum forward commitment term: 36 months plus a free 6-month extension during construction period	NA	NA
Maximum Amortization	35 years	35 years	35 years
Prepayment Provisions	Fee Maintenance	Fee Maintenance	Fee Maintenance
Subordinate Financing	Permitted per the TAH Guide	Permitted per the TAH Guide	Permitted per the TAH Guide
Tax & Insurance Escrows	Required per the TAH Guide	Required per the TAH Guide	Required per the TAH Guide

*May include bond refunding, substitution, or new issue transactions with 80-20 bonds, combination bonds, 501(c)(3) bonds, Section 8, Section 236, tax abatements, and LIHTC.

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The information in this document is not a replacement or substitute for information found in the Delegated Underwriting for Targeted Affordable Housing^SM Guide on AllRegs. Terms set forth herein are subject to change without notice.